Development Impact Fees City of Alameda James Edison July 1, 2014 - PowerPoint PPT Presentation

Development Impact Fees City of Alameda James Edison July 1, 2014 0

Impact Fee Overview 1

What are impact fees? • One-time fees charged to new development, usually at building permit • Represent new development’s fair share of infrastructure and facility needs • Not charged to existing residences or businesses 2

What are impact fees? • Used to fund facilities needed to serve new development – Not for operations and maintenance costs – Not for the share of facilities serving existing development 3

Mitigation Fee Act Findings (Govt. Code §66000 et seq) • Key findings – Need: Development ≈ Need for facilities – Benefit: Development ≈ Use of revenue – Rough proportionality: Fee amount ≈ development’s share of facility costs • Other findings – Purpose of fee – Use of fee revenue 4

Impact Fees – Basic Metho dology 1. Estimate existing development and future growth 2. Identify improvement standards 3. Determine new facility needs and costs 4. Allocate share to accommodate growth 5. Calculate fee by allocating costs per unit of new development 5

Alameda DIF Program 6

Alameda Fee Categories City Wide Fees • Public Safety • General Public Facilities • Parks • Transportation Alameda Point Fee 7

Planned Improvements (excluding AP) • Public Safety: o Fire and police facilities expansion, new apparatus, communications equipment upgrades • General Public Facilities: o Library facilities expansion, library technology expansion, technology improvements • Transportation: o New signals, traffic calming, roadway expansion, Share of AP Ferry Terminal • Park Facilities: o 19.7 acres of parkland, Share of AP Sports Complex 8

Citywide Impact Fee Schedule (Maximum Justified) 9

Fee Comparison Public Facilities Fee Comparison Survey ------ Alameda ------ Land Use Category City Average Current Maximum Proposed Residential Dwelling Units Single Family $ 29,357 $ 18,287 $ 30,904 $ 29,060 Townhome 27,584 17,819 30,904 29,060 Multifamily 19,624 10,578 19,004 19,004 Nonresidential - per 1,000 Sq. Ft. Office $ 12,464 $ 11,864 $ 12,391 $ 12,391 R&D 11,658 12,336 12,863 12,863 Retail 16,257 10,461 12,099 10,342 Hotel 15,602 11,965 12,492 12,492 10

Alameda Point Improvements • Transportation • Water • Sewer • Storm Drain • Dry Utilities • Parks and Open Space • Public Benefits 11

Alameda Point Improvement Costs Total Residential / Infrastructure Mixed Use Commmercial Facility Type Costs Allocation Factor Allocation Allocation Demolition and Site Prep $ 55,657,293 per acre $ 20,358,191 $ 35,299,101 Flood Protection and Roadway Grading 70,805,813 per acre 25,899,181 44,906,632 Street Work and Transp 145,813,090 Trips 17,933,572 127,879,518 Water System 20,366,000 Water DUEs 8,939,531 11,426,469 Sewer System 22,611,150 Sewer DUEs 7,956,102 14,655,047 Storm Drainage 37,969,000 Storm Drainage DUEs 12,734,430 25,234,570 Dry Utilities 21,066,192 Daytime Pop. 8,875,930 12,190,263 Parks/Open Space 79,955,000 Population 75,957,250 3,997,750 Public Facilities 24,927,000 Daytime Pop. 10,502,624 14,424,376 Total Infrastructure Costs $ 479,170,538 $ 189,156,811 $ 290,013,727 12

Proposed Alameda Point Impact Fees Residential / Item Mixed Use Commmercial Total Allocated Costs per Acre $ 189,156,811 $ 290,013,727 Developable Acres 171 296 Total Cost per acre $ 1,107,121 $ 978,965 13

Questions & Answers 14

Fee Increases Absorbed Based On Residual Land Value Market price remains constant – Set by regional real estate market 140 Public Facilities M (fees) 120 a Fee increase Profit r 100 k Construction e 80 Costs t Land Value 60 P r 40 i c 20 e 0 Appreciation With No Initial Value Appreciation With Fee Increase Higher Fees Higher fees shift $ from land values to public facilities 15

Cost Allocation Methods WHAT Facilities Serve WHO EXISTING INVENTORY PLANNED FACILITIES Existing Facilities Planned Facilities Existing Service Pop. New Service Pop. SYSTEM PLAN Existing + Planned Facilities Existing + New Service Pop. BUY IN NEW FACILITIES Existing Facilities Planned Facilities Existing + New Service Pop. Existing + New Service Pop. 16

Impact Fee Approach Existing development Future growth & facilities Facility Planned Facilities Funding & Standards & Costs Financing Cost Allocation & Fee schedule Public Final Implementation Hearing Report Strategy & Adoption 17

How is a DIF program adopted? • Conduct “nexus” study to document statutory findings • Provide 14-day notice • Governing board holds public hearing • Governing board adopts by majority vote • Begin collecting fees 60 days following adoption 18